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2022-04-20 City Council Item No. 12.1 Mobile Home Rent Stabilization Ordinace Discussion Presentation Regular MEETING - Additional Meeting MaterialsMobile Home Rent Stabilization Ordinance Discussion •Adopted upon incorporation in 2008 •To encourage fair bargaining between mobile home park residents and park owners to preserve both the value of the park and the residents’ unit •Addresses mobile home parks in unincorporated Riverside County •Applies to rental agreements established prior to January 1, 1990 •Not consistent with City operations or administrative setup Riverside County Ordinance No. 760 Menifee Mobile Home Parks Name # of Rental Spaces Sun Meadows 391 Bel Aire Estates 200 Sun City Mobile Estates 332 Hillside Mobile Home Estates 270 TOTAL:1,193 •Annual rent increase allowances •Operating expenses •Petitioning process •Administration •Exemptions Ordinance Discussion Topics •Up to 100% of Consumer Price Index (CPI) •Petition for additional increase if park owners do not feel they received a just and reasonable return on the park property after the maximum CPI increase •Increases for capital improvement projects if petitioned Annual Rent Increase Allowances Allowed •Real property tax •Utility costs •Normal repair & maintenance •License & registration fees •Management fees Operating Expenses Not Allowed •Mortgage principle & interest •Lease purchase payments •Code violation charges •Uninsured expenses •Real property depreciation •Park owners and residents are allowed to submit petitions •Fees required from petitioning parties •Reviewed by a Hearing Officer •Any ruling made by the Hearing Officer can be appealed to the Mobile Home Board/Arbitrator •Any ruling made by the Board/Arbitrator can be appealed to CA Civil Court Petitioning Process •Annual Registration Fee •$12 per space/year for administrative maintenance •Mobile Home Board •5 members, 2 alternates •Conduct regular public meetings •Conduct hearings as needed •Approve rental rate increases •Entitled to compensation Administration •Any mobile home park constructed after January 1, 1990 •Any rental agreement in excess of 12 months •Any mutually agreed-upon lease terms •Any increase that 2/3 of all residents affected by the increase approve in writing •Any space or unit voluntarily vacated, abandoned, repossessed or vacated pursuant to CA Civil Code Exemptions •Steamlined but maintain rent stabilization •Simple CPI increase for rent •Define allowable expenses for rent •Minimize administrative oversight •Create petition process for park owners only •Eliminate annual fees Proposed Ordinance •Review and discussion of options for repealing and replacing Riverside County Ordinance No. 760 Recommended Action Questions? Thank you. •The surrounding jurisdictions do not have rent stabilization: •Temecula •Lake Elsinore •Murrieta •Canyon Lake •Hemet •Perris Riverside County Ordinance No. 760